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Depletion of Natural Resources: Threats to Sustainable Development

Plaridel Institute of Strategic StudiesAngeles University, PampangaAug. 26, 20051

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Outline

Philippine Natural Resources: A Broad View Forests & Wildlife Wetlands and Marine Eco-System Protected Areas Mineral Lands Summary Threats / Issues Some Recommendations

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Philippine Natural Resources: A Broad View

Floral Diversity:

• 13,500 species• 5% of world’s flora• 22.5% of Malesian flora

• 25% are endemic to the Philippines• 5-8% are believed to be still unidentified

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Philippine Natural Resources: A Broad View

Faunal Diversity:

• 1,084 species of terrestrial vertebrates• 20,000 species of insects, only 5 are fully

inventoried• Endemism of invertebrates is generally poor

known, between 44% and 87%.

• 86 species of birds are threatened• 30 species of terrestrial mammals are threatened (Tamaraw and Philippine Eagle)

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Philippine Natural Resources: A Philippine Natural Resources: A Broad ViewBroad View

Wetlands & Marine Diversity:Wetlands & Marine Diversity:

22ndnd longest coastline in Asia longest coastline in Asia 9,875 species of flora and fauna9,875 species of flora and fauna 28% are economically important28% are economically important 145 threatened species, 15 145 threatened species, 15

ENDANGEREDENDANGERED # 2 in coral reef diversity # 2 in coral reef diversity # 2 in seagrass richness # 2 in seagrass richness

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Philippine Natural Resources: A Philippine Natural Resources: A Broad ViewBroad View

Protected Areas:Protected Areas: Composed of watershed, forest, Composed of watershed, forest,

mangroves, marine and other categoriesmangroves, marine and other categories 1997 – 290 areas (4.06 million has.)1997 – 290 areas (4.06 million has.) 2003 – 209 areas (2.6 million has)2003 – 209 areas (2.6 million has) Difference of Difference of 1.46 million1.46 million has. in 6 has. in 6

yearsyears

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Philippine Biodiversity: A Broad View

Minerals:

• Spanish times: small-scale mining

• American period: Small-scale but covered large areas and heavy volumes

• 1960s-1980s, RP among top ten producers of gold, nickel, copper, and chromite

• 1990s –dropped to 19th

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MINERAL RESOURCES POTENTIALMINERAL RESOURCES POTENTIALMINERAL RESOURCES POTENTIALMINERAL RESOURCES POTENTIAL

• 9 million hectares are high potential sites for copper, gold, nickel, chromite, etc.

• Only 1.4% covered by mining permits• Has the potential to be among the 10 largest mining

powers in the world

Mineral Land Distribution(As % of Total Philippine Land Area)

30% or 9 Million Hectares

1.4% Covered w/permits

High-Potential

Low-Medium Potential

70%

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Uses and Value of Forest Resources

1. Filling sustenance needsa) Food, clothing and shelterb) Medicinesc) Wildlife sanctuary

2. Commercial production demandsa) Timberb) Processed forest products

3. Carbon sink

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State of Philippine Forests

• The Philippines needs an ideal 54% of forest cover to maintain its natural ecological processes (Sajise, 1996)

• The Philippines has 23% of forest cover left (NAMRIA, 1988)

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• 8.02% of remaining Philippine forest cover is under existing mining permits* & active timber license agreements**

• 37% will potentially be opened to mining if the mining industry is revitalized

State of Philippine Forests

* as of 29 February 2004** as of 30 November 2004

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Important Biodiversity Areas

95 important biodiversity areas(81% of total 117 IBAs)

are found on forest habitats

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• 18 IBAs are threatened by existing mining permits*, 17 by active TLAs**, and 2 by both

• 82 potentially threatened by revitalized mining industry

Threats to IBAs

* as of 29 February 2004** as of 30 November 2004

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• The Philippines has The Philippines has 1818 identified identified major river basinsmajor river basins

• 1313 out of out of 1818 major river basins major river basins have forest cover below have forest cover below 20%20% of of its total areaits total area

Major WatershedsMajor Watersheds

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Rate of Deforestation

Philippine Forest Cover

1900 70% 1920 60% 1960 40% 1970 34% 1987 23.7 1998 22.2 2003 23%

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Causes of Deforestation

•Logging

•Upland Migration

•Agricultural Expansion

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FisheriesFisheries

Significant contributor to Philippine Significant contributor to Philippine economy (5% of GNP)economy (5% of GNP)

Provides 2/3 of national protein Provides 2/3 of national protein consumptionconsumption

Employs about 1 million fisherfolkEmploys about 1 million fisherfolk 12% of the population depend on 12% of the population depend on

fisheries-related activitiesfisheries-related activities Steady dollar earner (+ value net Steady dollar earner (+ value net

export)export)

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Fisheries Employment, 1990

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1948-1994 Data reveal…1948-1994 Data reveal…

Catch per unit effort (CPUE) has steadily Catch per unit effort (CPUE) has steadily fallenfallen

By 1984, it was only a third of 1965 figureBy 1984, it was only a third of 1965 figure

““more effort has been dedicated more effort has been dedicated to catching fish, but the yield per to catching fish, but the yield per unit has declined”unit has declined”

(Israel & Banzon, 2002)(Israel & Banzon, 2002)

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Philippine Fisheries

1. The marine fisheries sectors is already over-fished

2. Models of efficiency and sustainability have established that “peaks” were reached between early 80s and early 90s

3. Unemployment is a likely serious side effect (466,000)

(Israel & Banzon, 2002)

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Coastal Resources

Between 1976-1981, Philippine Coral Reefs:

32 % POOR38% Fair24% Good6% Excellent

(UP-MSI, OneOcean.Org)

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Coastal Resources

EarthWatch, 1998

30% of Philippine Reefs are DEAD

39% are dying

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Philippine Coastal Resources

4.3% coral reefs are in GOOD condition

95.7% are in a VERY BAD STATE

(Phil Dustan, College of Charleston

Using LandSat 7)

9th International Coral Reef Symposium(Bali Indonesia, 2000)

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Protected AreasProtected Areas

• Recognizes the importance of ecological biodiversity as an element of sustainable development

• Comprises of forests, tourist zones, marine reserves, other landscapes/ seascapes

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Uses & Values of Protected Areas

Sustenance of local ecology and economy

• Wildlife sanctuary

• Tourism Ancestral Domain

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Threats to Protected Areas

Increasing Human Population Demands

Changes in Land Use Preference

Commercial Tourism

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Philippine Mining Industry – At a GLANCEPhilippine Mining Industry – At a GLANCE

Gross Production Value : US$ 764 mGDP Contribution : 1.62%Value Added Contribution: US$ 327 mValue of Mineral Exports : US$ 638 mExports Contribution : 1.8%Direct Employment : 104,000Wages & Benefits : US$ 91 mTaxes & Fees : US$ 38 mMineral Resources : Nickel,

Cobalt, Silver, Gold, CopperMultiplier Effect : For each

mining job, 4 to 10 additional jobs upstream &/or downstream created

Source: Chamber of Mines of the Phils.

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RP’s COMPETITIVE ADVANTAGE

Natural Mining Endowments

• Located in the “Ring of Fire”• 5th most mineralized country in the world

– 2nd in Gold– 4th in Copper– 5th in Nickel– 6th in Chromite

• Established reserves of 13 known metallic & 29 non-metallic minerals (source: Mines & Geosciences Bureau)

• RP has 9 million hectares of mineralized land– Only 420,000 hectares – with mining permits– THUS, 8.6 million hectares – still waiting to

be tapped!

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RP’s COMPETITIVE ADVANTAGE Incentives to Mining Projects

• 4 to 8 years Income Tax Holidays• Special 5% tax rate after the lapse of ITH (for ecozone

locators)• Tax & duty-free exemption of imported capital equipment• Unrestricted use of consigned equipment• Additional deduction for labor expense of 50%• Additional deduction for training expense of 50%• Exemption on wharfage dues• Employment of foreign nationals• VAT exemption (for ecozone locators)

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RP’s COMPETITIVE ADVANTAGE Government Support & Initiatives

• Supreme Court ruling allowing 100% foreign ownership of mining companies

• Policy-shift from “tolerance to promotion” of mining operations

• Establishment of Mining Investment Assistance Center (MIAC)

• Implementation of Mineral Action Plan (MAP)• Streamlining of procedures for issuance of

mining permits (e.g. MAP – from 3 years to 7 months processing)

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ECONOMIC CONTRIBUTIONS ECONOMIC CONTRIBUTIONS OF THE MINERALS SECTOR (FY 2003)OF THE MINERALS SECTOR (FY 2003)

Production Value P 41.5 Billion

or 19% increase from CY 2002

Value Added Contribution P 18.0 Billion or 1.6% of Phil. GDP

or 1.52% of the Phil. GNP (CY 2003)

Exports US$ 638 Million or 1.8% of total Phil. Exports

Paid-up Investments P 367 Million (CY2002)

Employment 104,000

Wages and Benefits P 4 to P5 Billion

Taxes and Fees Estimate P 2.1 Billion (CY 2002)

Multiplier Effect For each mining job, 4 to 10 allied jobs created upstream and downstream

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CONCRETE IMPACTS OF CORPORATE MINING IN THE PHILIPPINES

Outright violation of ancestral lands rights, socio-Outright violation of ancestral lands rights, socio-political systems and self determination of political systems and self determination of indigenous peoples!indigenous peoples!Violation of the PFIC: subversion of consent, Violation of the PFIC: subversion of consent, manipulated consultations, one-sided information, manipulated consultations, one-sided information, empty promisesempty promises*** IPRA useless to defend IP rights! Some NCIP *** IPRA useless to defend IP rights! Some NCIP officials become negotiators of companiesofficials become negotiators of companies

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CONCRETE IMPACTS OF CORPORATE MINING IN THE PHILIPPINES

Pollution and destruction of water bodies: Agno river, Abra river, Mogpog river and Boac rivers, others

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CONCRETE IMPACTS OF CORPORATE MINING IN THE PHILIPPINES

Destruction of agricultural lands due to siltation Destruction of agricultural lands due to siltation and water pollution--- hundreds of thousands of and water pollution--- hundreds of thousands of peasants lossing their livelihoodspeasants lossing their livelihoodsMINING THREAT TO FOOD SECURITY!MINING THREAT TO FOOD SECURITY!

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CONCRETE IMPACTS OF CORPORATE MINING IN THE PHILIPPINES

Systematic violation of the rights of mine workers: low wages, union-busting, denial of benefits, high risk working conditions, poor safety standards and facilities

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CONCRETE IMPACTS OF CORPORATE MINING IN THE PHILIPPINES

Health problems due to

Water and air pollution

- Respiratory diseases

- Skin problems

- Reproductive health of women

- others

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CONCRETE IMPACTS OF CORPORATE MINING IN THE PHILIPPINES

Destruction of land and creation of massive mine toxic waste:

6-7 tons of toxic waste per ounce of gold

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CONCRETE IMPACTS OF CORPORATE MINING IN THE PHILIPPINES

Denudation of our forestsDenudation of our forests

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CONCRETE IMPACTS OF CORPORATE MINING IN THE PHILIPPINES

MILITARIZATION OF MINING AREAS RESULTING TO MILITARIZATION OF MINING AREAS RESULTING TO MASSIVE HUMAN RIGHTS VIOLATIONS OF PROTESTERS MASSIVE HUMAN RIGHTS VIOLATIONS OF PROTESTERS AND AFFECTED COMMUNITIES: AND AFFECTED COMMUNITIES:

• intimidation and intimidation and harassment, arrest and harassment, arrest and detention, charging of detention, charging of fabricated criminal offenses, fabricated criminal offenses, killings and otherskillings and others

• use of divide and rule use of divide and rule tactics thru formation of tactics thru formation of paramilitary forcesparamilitary forces

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Sustainable Mining?

Sustainable Mining myths…

1. It has a small footprint

2. Communities want mining

3. The government will protect

4. Enormous economic benefits

5. Environmental Integrity

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Why is sustainable mining a myth?

1. Mining has a small footprint? • No, its not just a small hole in the ground.• Mills, processing plants, tailings dams, wastes

It’s a major user of water

2. Communities want mining?• Disinformation• Division of communities• Harassment and threat• Questionable consultations

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3. The government will protect us and the environment?

• Corruption• Weak enforcement• DENR is SCHIZOPHRENIC

4. Economic benefits are enormous?• Unverified financial data• Mining dependent countries are lagging behind• Employment is limited casual, unskilled, contractual• Tax holidays, 100% repatriation, 100% foreign ownership

Why is sustainable mining a myth?

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5. Environmental Integrity?• 53% of ancestral domains are threatened• 60% of protected areas are threatened• Agricultural lands are threatened• Coastal areas are threatened

Why is sustainable mining a myth?

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Responsible Mining

Is there such a thing?

1. Self-regulation, not government supervision

2. The “best practice” is fragmented, not yet completed in one site

3. We do not a have a plan to develop the downstream industry!

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The WB EIR

"Not only have the oil, gas and mining industries not helped the poorest people in the developing countries, they have made them worse off. Scores of recent academic studies and many of the banks own studies confirmed our findings that countries which rely primarily on extractive industries tend to have a higher level of poverty, child morbidity, civil war, corruption and totalitarianism than those with more diversified economies".

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The TRUTHS…One gold wedding ring leaves between 6 to 20

tonnes of waste rock.

A citrus farm in Nueva Vizcaya earns a farmer 1.2 million pesos per hectare

Timuay Boy Anoy (a Subanon) from Zamboanga cannot enter his ancestral land and their sacred grounds.

40,000 hectares from the Samar Island National Park will be extracted.

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The CARAGA regionThe CARAGA region::

a review of existing resource management regimes

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CARAGACARAGA

1997 in the Caraga region, the average income of indigenous peoples was 42% lower than the national average

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CARAGACARAGA

There are seven (7) Watersheds/Forest reserves;

10 sites are under the initial components of the NIPAS act;

1 Site has been officially legislated as a National Park

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TLAs w/in the CADC areas in CARAGATLAs w/in the CADC areas in CARAGA

Three (3) active Timber Lease Three (3) active Timber Lease Agreements are currently operating Agreements are currently operating w/in five (6) NMCRMP-CADCs;w/in five (6) NMCRMP-CADCs;

The recently awarded CADT 002 has a The recently awarded CADT 002 has a 100% overlap with an existing TLA;100% overlap with an existing TLA;

Areas of the TLAs range from 5,000-Areas of the TLAs range from 5,000-100,00+ hectares;100,00+ hectares;

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IFMAs and CADCs in CARAGAIFMAs and CADCs in CARAGA

Seven (7) active IFMAs overlap with Seven (7) active IFMAs overlap with four (4) CARAGA-CADCs;four (4) CARAGA-CADCs;

Areas covered range from 5,000-Areas covered range from 5,000-50,00 hec.50,00 hec.

1 IFMA covers 100% of a CADC;1 IFMA covers 100% of a CADC; Corporate IFMA holders include Corporate IFMA holders include

local and multi-national groups.local and multi-national groups.

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Mining Activities/ApplicationsMining Activities/Applications

There are forty two (42) pending Mining applications that overlap or are in the same area with eight (8) CADCs in CARAGA;

Two (2) MPSAs have been approved;

One (1) EPA has also been approved.

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Issues/problemsIssues/problems

Overlapping coverages of LTIs; There is no clear delineation of

resource management priorities; Conflicts in jurisdiction, management

prerogative/structure and objectives; Most existing multi-sectoral bodies for

are underutilized, lack credibility or non-functioning.

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Issues/problems

Lack of an institutional arbiter/facilitator that can be viewed as impartial, objective and acceptable to all stakeholders;

Lack of a common framework and venue for dialogue to resolve conflicts;

Lack of transparency in information regarding resources. (kanya-kanya)

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Results on the ground Very high propensity for violence; Polarization of stakeholders and

marginalization of ICCs/poor communities; (wala nang nag-uusap)

Difficulty in implementing developmental activities/projects due to jurisdictional problems (NMCRMP of IFAD has yet to take off)

Demoralization and loss of faith w/ Government;

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Summary Threats & Issues

Habitat Destruction Overexploitation Pollution

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Millennium Development GoalsGoal 7: Environmental Sustainability

The Philippine SusWatch Network (2005) concluded that the growth-oriented approach of the present administration is unsustainable and aggravates environmental destruction and poverty because:

it supports an enterprise system that appropriates community resources which deprives local communities of the benefits of their resources.

its continuing emphasis on globalization pushes the local communities to shift the use of their resources from domestic consumption and development to meeting quotas set by commitments to international trade.

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Some Recommendations

Reject the growth-led model of development Adopt the sustainable development

framework Comply with international commitments Alternative Lifestyle: Low consumption

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Thank You Very Much!

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Depletion of Natural Resources: Threats to Sustainable Development

Plaridel Institute of Strategic StudiesAngeles University, PampangaAug. 26, 2005